Does an IVA company have a legal obligation to take a f&f offer to creditors?

Get expert opinion. This is the place for new questions to be posted.
5 posts Page 1 of 1
User avatar
pat745
Posts: 2
by pat745 » Sun Oct 01, 2017 5:37 pm
Does an IVA company have a legal obligation to take a final settlement offer to the creditors to complete the IVA or is it down to the individual companies T&Cs?
User avatar
Foggy
Forum Expert
Posts: 24127
Contact
by Foggy » Sun Oct 01, 2017 5:50 pm
They are generally obliged by standard Ts&Cs to present a full and final or variation within 21 days of being requested to by the debtor. They can use the benefit of their experience to advise against an offer or advise amendments, but they should present it if you insist. However, a lot of weight is placed upon their recommendation and, if they do not support a request they could, maybe, affect the outcome indirectly.
User avatar
pat745
Posts: 2
by pat745 » Sun Oct 01, 2017 6:00 pm
Foggy wrote:
They are generally obliged by standard Ts&Cs to present a full and final or variation within 21 days of being requested to by the debtor. They can use the benefit of their experience to advise against an offer or advise amendments, but they should present it if you insist. However, a lot of weight is placed upon their recommendation and, if they do not support a request they could, maybe, affect the outcome indirectly.


Hi thanks, the company Vanguard T&Cs aren’t that clear and they seem to be using the T&Cs from the CAB. Just need to know that if we push them to take it to the creditors that they will do and are legally obliged to. I know it is in their best interest not to do so, so they can make more money.
User avatar
Foggy
Forum Expert
Posts: 24127
Contact
by Foggy » Sun Oct 01, 2017 6:31 pm
pat745 wrote:
Foggy wrote:
They are generally obliged by standard Ts&Cs to present a full and final or variation within 21 days of being requested to by the debtor. They can use the benefit of their experience to advise against an offer or advise amendments, but they should present it if you insist. However, a lot of weight is placed upon their recommendation and, if they do not support a request they could, maybe, affect the outcome indirectly.


Hi thanks, the company Vanguard T&Cs aren’t that clear and they seem to be using the T&Cs from the CAB. Just need to know that if we push them to take it to the creditors that they will do and are legally obliged to. I know it is in their best interest not to do so, so they can make more money.



This isn't always the case --- if, as is usual these days, they are on a percentage based fee structure they will be getting most of the full fee and would have to do far less work for it -- I would say, 9 times out of 10, they do somewhat better !
User avatar
sheraz.butt
Industry Expert
Posts: 153
by sheraz.butt » Mon Oct 02, 2017 7:52 am
Your IP would be able to advise you if the offer is reasonable for creditors to accept.
They would also take their fee for a F&F from the settlement generally so i can't see them not wanting to put it forward if realistic.
5 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 26 guests